
The IRS does accept DocuSign for electronic signatures, but with some limitations. The IRS requires that electronic signatures meet specific requirements, which we'll explore further.
One of these requirements is that the electronic signature must be able to be verified, which is a key feature of DocuSign. This means that the IRS can verify that the signature was made by the intended individual.
The IRS also requires that electronic signatures be used in conjunction with a physical or digital copy of the document, which is a standard practice with DocuSign. This ensures that there is a permanent record of the signature and the document.
In terms of the types of documents that can be signed electronically, the IRS permits the use of electronic signatures for a wide range of tax-related documents, including tax returns and other forms.
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Electronic Signatures
Electronic signatures are a convenient and secure way to sign documents electronically, and the IRS has specific guidelines on what forms of electronic signatures are acceptable.
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The IRS allows many different forms of electronic signatures, including typed names, scanned images of handwritten signatures, and even biometric-based identifiers like fingerprints.
One of the most common forms of electronic signatures is a typed name, which can be typed within or at the end of an electronic record.
The IRS also permits scanned or digitized images of handwritten signatures, which can be attached to an electronic record.
A shared secret, such as a code, password, or personal identification number (PIN), is also an acceptable form of electronic signature.
In addition to these forms, the IRS also accepts unique biometric-based identifiers, such as a fingerprint, voice print, or a retinal scan.
Other forms of electronic signatures include handwritten signatures input onto an electronic signature pad, and handwritten signatures, marks, or commands input on a display screen by means of a stylus device.
Here are some examples of acceptable electronic signatures:
- Typed name that is typed within or at the end of an electronic record
- Scanned or digitized image of a handwritten signature
- Shared secret, such as a code, password, or personal identification number (PIN)
- Unique biometric-based identifier, such as a fingerprint, voice print, or a retinal scan
- Handwritten signature input onto an electronic signature pad
- Handwritten signature, mark, or command input on a display screen by means of a stylus device
- Selected checkbox on an electronic device such as a computer or tablet
- Signature created by a third party software
Is Docusign an Approved Method?
Docusign is an electronic signature platform, but the IRS doesn't specifically mention it in the article sections. However, the IRS does permit electronic signatures created by third-party software, which could include Docusign.
The IRS lists various forms of electronic signatures, including those created by third-party software, in IRM 10.10.1.3.1.1. This suggests that Docusign's electronic signatures might be acceptable to the IRS.
The IRS also specifies that no specific technology or form of signature is required, as long as it's permitted by the IRS on the specific document. This gives some flexibility in using electronic signature platforms like Docusign.
However, the IRS does have a list of approved signature methods, and Docusign isn't explicitly mentioned in IRM Exhibit 10.10.1-1. But, the IRS does permit electronic signatures created by various methods, including those created by third-party software.
To be safe, it's always best to check with the IRS directly or consult with a tax professional to confirm whether Docusign is an approved method for your specific situation.
Here's a list of electronic signature methods that are specifically mentioned in the article sections:
- Typed name that is typed within or at the end of an electronic record
- Scanned or digitized image of a handwritten signature
- Shared secret, such as a code, password, or personal identification number (PIN)
- Unique biometric-based identifier, such as a fingerprint, voice print, or a retinal scan
- Handwritten signature input onto an electronic signature pad
- Handwritten signature, mark, or command input on a display screen by means of a stylus device
- Selected checkbox on an electronic device such as a computer or tablet
- Signature created by a third-party software
Using Electronic Signatures with IRS
The IRS has a range of approved electronic signature methods that can be used for various forms and applications.
The IRS permits a variety of electronic signature forms, including typed names, scanned or digitized images of handwritten signatures, shared secrets, unique biometric-based identifiers, and more.
You can use an electronic signature pad, a stylus device, or even a voice signature technology to sign certain forms.
The IRS has a list of approved signature methods, including selecting a checkbox on an electronic device, inputting a PIN, and using an electronic signature pad.
For example, Form 1040, the U.S. Individual Income Tax Return, can be filed electronically with an electronic signature.
The IRS has also temporarily allowed electronic signatures for certain tax forms during the COVID-19 pandemic.
Forms 11-C, 637, 706, and 709, among others, can be submitted with electronic signatures, provided they were signed and postmarked on August 28, 2020, or later.
Here's a list of some of the IRS forms that can be submitted with electronic signatures:
- Form 11-C, Occupational Tax and Registration Return for Wagering
- Form 637, Application for Registration (For Certain Excise Tax Activities)
- Form 706, U.S. Estate (and Generation-Skipping Transfer) Tax Return
- Form 706-A, U.S. Additional Estate Tax Return
- Form 709, U.S. Gift (and Generation-Skipping Transfer) Tax Return
- Form 8283, Noncash Charitable Contributions
- Form 8453 series, Form 8878 series, and Form 8879 series regarding IRS e-file Signature Authorization Forms
- Form 8802, Application for U.S. Residency Certification
- Form 8832, Entity Classification Election
- Form 8971, Information Regarding Beneficiaries Acquiring Property from a Decedent
- Form 8973, Certified Professional Employer Organization/Customer Reporting Agreement
- Elections made pursuant to Internal Revenue Code section 83(b)
Note that the IRS has specific requirements for electronic signatures, so be sure to check the IRS website for the most up-to-date information.
US Government Digital Tools
The US government is making significant strides in digital transformation, with the 21st Century IDEA Act setting minimum functionalities and security standards for federal agencies.
These standards require agencies to offer digital versions of paper-based citizen services and accept digital signatures, making it easier for citizens to complete transactions digitally.
The IRS Inflation Reduction Act (IRS IRA) was released in 2022, focusing on creating digital forms, expanding digital services, and digitization.
Digital forms and services are expected to save taxpayer dollars and improve the experience of interacting with government websites.
The 21st Century IDEA Act and IRS IRA reaffirm the national digital transformation trend, which was further accelerated by legislation in California (AB 1879) that authorizes electronic signatures for California Board of Equalization documents.
This trend is expected to continue, with digital self-service tools being implemented across every government agency.
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Frequently Asked Questions
What forms does IRS not accept electronically?
The IRS does not accept electronic submissions for certain forms, including the Identity Theft Affidavit (Form 14039) and the Collection Information Statement (Form 433-F), which require a physical signature. These forms must be completed and submitted manually to the IRS.
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